At the beginning of the year, the Prepaid Insurance account had a $1,200 balance which represented an insurance policy that will expire in two years. On July 1, a 3-year, $1,800 policy on a newly constructed building was purchased. The December 31 year-end, adjusting entry will be:
a. Insurance Expense, debit, $3,000; Prepaid Insurance, credit, $3,000.
b. Insurance Expense, debit, $1,200; Prepaid Insurance, credit, $1,200.
c. Insurance Expense, debit, $1,000; Prepaid Insurance, credit, $1,000.
d. Insurance Expense, debit, $ 900; Prepaid Insurance, credit, $900.
e. none of the above.
d
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A) Car repair shop B) Interior decorator C) Soft drink manufacturer D) Custom cabinet maker
Purchasing predictability is relatively high for ______.
a. direct material purchases b. indirect material purchases c. centralized material purchases d. decentralized material purchases
Which one of the following statements represents an advantage of the P system over the Q system?
A) Less safety stock is carried to achieve the same service level. B) The replenishment intervals can be more easily individualized for items. C) Orders can be more easily combined to the same supplier. D) A P system is more suitable for quantity discounts and capacity limitations.
Franchising is typical of the administered vertical marketing system.
Answer the following statement true (T) or false (F)